New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-05-19
MR. GOULD CAUSES SURPRISE.
,nRITArEp WHEN CLOSELY QUESTIONED.
HIS PLAN TO BUILD ANOTHER ROAD AND LET THE

Jay Gould arrived few minutes before IL O'clock yes
terdsy at the rooms of the Pacific Railroad Commission
An executive session was in progress and ABOUT aor
reporters and others occupied the anteroom. E1'uos'
Dillon accompanied Mr. Gould, who dropped in.o on~n
By the door as he entered and remaineo 'e, m
s ,h door n tho inner room was opened crowd soon
surge In and before the proceedings were opened tne
rooms were filed Mr.. Gould lacked In appearance 'he
reshpess of the day before he looked weary 'nougn
ne continued calm. dignihed and cool Now and then
during the examination he spoke with snow OF irrla
tion when questions which he had answered were re-
heated but in the main his given without
hesitation in his customary tone and his habuay quiet
way.
On taking the chair the witness drew from MS pocket
number of papers, complete and correct MS
of Tuesday, Among these statement showing the
and stock issues OF the ROADS inter-
.sted in the consolidation scheme memorandum OF ms
transactions in the Stock Exchange between January
1880 and the date Of consolidation In tho soc"ie' "
the combining roads, and statement showing savings Al
nncp al and interest resulting from the adoption Oh tne
plan. ~, =, .,
from Mr. Gould an explanation that the Kansas Pacific
reorganization certificates issued In the interim and
entitled the holders to draw consolidated bonds 1hen
the witness explained at length with map before him.
the reasons which induced him TO propose the PLAN he
said he was the largest Of Kansas Pacific bonds
and was also trustee and naturally wanted the Denver
Pacific to 90 in The proposition was that If the Denver
Pacific stock put In, the organizers OF the pool wou
consolidate with that road and cover everything with the
general bond and it's guarantee His duty as trustee
was clear but also clear that he should make the
best bargain possible, and this was done They had
managed 20 get 100000 stricken off the MORTGAGE
He Was woEng 70 dollar e out Of this transaction and
he glad 70 put nail IN thst IN d. n cents oS
a Hoo or h nst What thew cost him Tue witness
planned that by freeing the stock from ne o.
cbsrrns he Obligations assumed By the Kansas Pacific
in connection with the purchase OF the lead
ing u to an assumed inconsistency on the part OF the
chase Of the Missouri Pacific. Mr.. Gould said
Missouri Pacific to . sss what what an Ga
Rs'ssSs Ss tie JRcSS mss BY turning
Thought that road It consisted OF 2SS miles, anu no" VIC
Continuing he said he informed his associates OF the
purchase of the Missouri Pacific within about month
They came to see hm-Mr. Ames, Mr. Dillon Mr.. ATKINS
and probably Mr. Dexter He did not write them on the
subject, as he wrote letters
Psciac You were director in the Union Pacific Ayes
hcoOSs to the ethics Wall Street
Within the . Of r sus S
property design eXtsp sion which yGS
consider not sSe S b w1 no 1s
Be do and that was one Of the reasons
o-sti You admit that did form the scheme or
consider within Wit he'll. m Ss because 1t had been
r THAT s was n
Sneed 10 take an interest in Pacific to protect the
TI Ssei fSa into srTry
Stormy Interview said would Pacific
and 10 g Louis that was a asses s sbe,ps wy and
him q. price and he h named sb it. aR nd sn
~ SSa s been hs TS have
pro6aS OF the Thurman 6i and ats5 II
road from omaha TO just outside Of the right Of Wy
1 sS the a sa' Se q
that would let other people walk The
ing squeeze Of the tuTniP than there was in IL
Ses@S,8e eS seir Interests Ny plan GOV
Sau9San S was
%s ssd n S pe MertS principal aud back T
ured up
Commission as they had heard of the proposition,
and the witness betrayed some irrabihty at being re-
peatedly questioned respecting IT, as II his WORD was
doubted The course Of the examination was at THIS
point quickly shifted again 10 the subject OF MI GouQs
designations He said he presumed he wrote the letters
himself and whatever action was taken by the boards
was without his foreknowledge and not prompted by
him He simply explained that II be had remained as
director the companies he would have complicated the
sale and dealings with them, and for that reason he
resigned
Q-when did you tell Mr.. sage Of yonr RESIGNATION Al
met often I'd presume told him OF every step TOOK
The witness said that before January ~ leoO' "heh
he wrote his resignation there had been bargain made
by which the companies were to pay him for the IT.
Joseph Kansas Central and no bargain TO pay him
certain price for the Union Pacific Central branch The
whole Of that transaction contaminated afterward
and at the interview with the Boston people AT this
iuncture Mr. Holmes reminded :he witness that he had
had an interview with the Boston people some time pre-
yous to going West and his proposition made to them at
that time had been ignored but Mr. Gould could
anything beyond the fact that about that time ne nad
souri, Pacific. The witness was asked II ne couiu ex-
plain the action Of the board Immediately after accepting
lis resignation with respect TO proposition OF the Colo.
RADIO Central Company TO cancel ani apnu inc lease OF
February 1850 He replied tnat ne ana n4E
laws providing that railroad owning OF leasing roads
been necessary to cancel the lease SO that
the consolidation scheme conld be perfected He
Of Dodge and humphrey was be presented at Of
the meetings He knew the matter had been referred to
consolidation based on the agreement had with the
Boston gentlemen Iae meeting bat All Se
steps which counsel recommended would be taken
oHOw after the articles Of consolidation Were signed
sway the the same day after the meeting,
The witness said that so long as he was director OF
the Union Pacific he could consider himself free TO
take care OF himself. He continued
While going or IT TG aagS Ssn % so
fmoposed to dyest myself Of both dreetorshps finn
They dated The same day. Al could not e say that
At time only remember that resigned and why re-
signed precisely the time Of day or before
DIVINE YOU in your did you know that the
meeting OF the Kansas Pacific was going on Al pre-
Did you suggest Mr.. Sage that he should movo that
your be accepted and act so promptly A-No
explanations II was because lie was
prominent lie quick and would be natural
forh 10 time. presume he said move
thai the be accepted and 1t was done lie has
many meetings attend and he always tres to facilitate
have time 10 devote TO other matters
said anything TO him more Than that haa resigned
situation said that the matter had got INTO
q shape where could not act as director
Mr. Gould admitted that the aggregate OF the bonds
turned In by him. reported by Mr. Mink was doubtless
correct shown that he turned over 10 shares
OF ST and Western stock at 20, while In Mr. Gould
Abatement his purchase only $50. MT Gould said
he also got OF this stock in the consolidation OF the
Hastings and Grand Island. The $7S4,OOO OF the St 10
Bridge bonds he turned over included the $3.50 600 he
had previously sold TO Messrs. sage and Dillon The